McDonald's Corporation (MCD): Today's Highlighted Winner For Leisure

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

McDonald's Corporation ( MCD) pushed the Leisure industry higher today making it today's featured leisure winner. The industry as a whole closed the day down 0.3%. By the end of trading, McDonald's Corporation rose $1.20 (1.2%) to $100.25 on average volume. Throughout the day, 4.6 million shares of McDonald's Corporation exchanged hands as compared to its average daily volume of five million shares. The stock ranged in a price between $99.02-$100.42 after having opened the day at $99.40 as compared to the previous trading day's close of $99.05. Other companies within the Leisure industry that increased today were: Good Times Restaurants ( GTIM), up 5.2%, Morgans Hotel Group Company ( MHGC), up 3.9%, Starbucks Corporation ( SBUX), up 2.4%, and Expedia ( EXPE), up 2.3%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

McDonald's Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. Its restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. McDonald's Corporation has a market cap of $99.97 billion and is part of the services sector. The company has a P/E ratio of 18.6, above the S&P 500 P/E ratio of 17.7. Shares are up 12.3% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate McDonald's Corporation a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates McDonald's Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, Pizza Inn Holdings ( PZZI), down 9.8%, Chanticleer Holdings ( HOTR), down 9%, Premier Exhibitions ( PRXI), down 6.5%, and Nevada Gold & Casinos ( UWN), down 6.4%, were all laggards within the leisure industry with Yum Brands ( YUM) being today's leisure industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

How to Travel in Style Exactly Like Billionaire Warren Buffett

Stocks Dad Would Have Loved, And Why He Was Right

5 Things on the Menu at Jollibee, the McDonald's of the Philippines

How to Live Just Like Billionaire Warren Buffett

Crazy Weak U.S. Dollar Will Make These 10 Companies Huge Winners